This blog talks about my own experience in my various jobs and other observations

Monday, November 11, 2013

TIPS FOR HR TO HANDLE LAYOFFS WITH MINIMAL REPERCUSSIONS

Introduction

Layoffs
have become necessary today for companies who are faced with declining sales
revenue figures. This also becomes necessary in times like today when the
business environment is very competitive and uncertain. In such a scenario
there is a way to handle layoffs which has been presented in this article.

Ways to handle layoffs

Every
good manager who cares for his team dreads the thought of asking his team
members to go. Every good manager who has empathy in his heart will hesitate
when handling his employees the pink slip. Presented here are some tips for all
those managers who have to act as “terminators”.

·Do
your homework on the business needs of the reduction

Transparency
is the buzzword when you are handing out pink slips during a recession. It will
be much easier to explain to the employee the reasons for the termination. But
this will require that you yourself are confident and certain about them.
Therefore you need to do adequate research on the reasons why the staff
reduction is taking place.

·Do
thorough upfront planning and analysis

Choosing
which roles will be affected and which employees to lay off will be a key
deciding factor and a study of this will have to be done in advance before the
actual date of termination. Due to labor laws being what they are, it is always
better to consult both your HR and legal counsel to ascertain both the ethical
and the legal angles of a termination or layoff.

·Review
the separation package and think through the messages you want to convey

The
actual meeting with the impacted employee being brief, you will want to ensure
that you can convey to him the reason, timing and procedure of the layoff
within that time period in such a way that he does not feel offended. For this
you will have to make adequate preparation in advance so that you do not convey
a wrong message to your outgoing employee.

·Be
prepared for emotions

Invariably
at such times, employees tend to get very emotional, shocked and sad. Conveying
such decisions is always difficult and involves emotions on either side, the
employees and the managers, who conveys the decision. Therefore it is advisable
to involve your HR in the process so that he can handle any adversely emotional
situation.

·Do
not try to enter into a negotiation or debate

Some
employees may request you to rethink your decision. They may tell you how they
need the job very badly or how their performance is better than some of the
others who are being retained. This is not the time for negotiation or debate.
If you have analyzed the situation thoroughly and made your decision, it is
best to stick to it.

·Tell
the remaining employees of your decision as soon as possible.

At
times the impacted employee will leave immediately on the date they are
terminated. At other times, they may return to work for an intermittent period.
In any of the above cases, the employee should be allowed to go home once the
meeting to convey the termination message to him is over. At this time, it is
better to call a face-to-face meeting of all the employees both of those who
are terminated and who are being retained. Explain to them the actual situation
in a transparent manner.

About Me

I am a graduate civil engineer with 15 years of industry experience and a diploma in construction contracts management.

I am also a freelance article writer. I can write articles on all topics ranging from project management, civil engineering, procurement, human resources, marketing, finance, health and well being, social media, etc.